Revenue Arrangements of Deliverables in Hemo Technology Incorporations

Revenue Arrangements of Deliverables in Hemo Technology Incorporations

Introduction

The objective of this assignment is to identify the accounting treatment of multiple deliverable revenue arrangements in the light of the rules proposed by Financial Accounting Standard Board (FASB) and International Reporting Standards (IFRS). In given case, there is a single vendor named Hemo Technology Incorporation which is selling some bio medical equipment and other related stuff to a customer named Extract. The case is divided into three parts and answers related to each part are given below.

Solution to Part 1

Solution to part 1 can be ...